Over the past few weeks, stocks have slipped about 5% from their all-time highs. So far, this is a very mild retreat compared to corrections of 16% in 2010, 19% in 2011 and 10% in 2012. Corrections are a normal part of an evolving investment cycle and tend to last from three to six weeks. […]
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Many financial counselors advise people to own index funds because of their low cost structure. But this low cost is achieved from owning all companies, the good, the bad and the ugly. Are you adverse to owning tobacco companies? Too bad, as an index fund investor, you own them. An index fund also forces investors […]
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It seems logical to think that good economic news would be good. Some people even say that they will finally get back into the stock market when economic conditions are better. If businesses are building new plants, buying new equipment and hiring more workers, most people will feel better about their future. What’s not to […]
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Interest rates can go up for one or all of the following reasons: Federal Reserve tightening, higher inflation, or increased demand for credit. Let’s examine these three variables. While the Federal Reserve will certainly reduce monetary stimulus someday, that moment is likely far down the road. Ben Bernanke, a self-styled “student of the Depression”, has […]
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